04 Jul 2022
The unexpected value of obtaining a second opinion on your life insurance coverage
Choosing the right life insurance plan is much more than providing protection to your family in the event of your untimely death — it is also a financial investment that will have an impact on the rest of your current portfolio, as well as on your future financial success. If you are a first-time policyholder, the various coverage options can be confusing. After the first meeting with your provider, you may be left guessing whether the coverage they recommended is truly the right choice and if you’re paying a fair price for the stipulated benefits. Many are so overwhelmed by the extensive details from the first visit that they often settle for a policy, despite no obligation to do so.
However, seeking a second opinion on the available life insurance coverages can help you set your mind at ease, knowing that you’ve made an informed decision. At times, you may seek a second opinion over concerns about the health of your current portfolio. Other times, you may simply want to ensure that you’ve made the best available choice for your family and its future financial needs. No matter your concern, you can never go wrong by getting a second opinion.
Why get a second opinion
In the UAE, rising competition among life insurance providers means that the cost of premiums could soon decline. In addition to rate reductions, policyholders may also be in for fewer exclusions and comprehensive coverages. Whether you’ve had your life insurance policy for a significant period of time or recently obtained it, getting a second opinion on your policy may reveal discounts for the existing level of coverage or additional benefits for the same premium.
Another reason you may choose to obtain a second opinion is if your own personal circumstances have changed. If you’ve previously suffered from health conditions, such as high cholesterol or obesity, that caused your premiums to be higher, but have since addressed these issues, you may now be eligible for a lower rate.
Treat your life insurance like any other financial decision
You wouldn’t purchase a new home without first paying a visit. Without an inspection, you’ll be trusting the seller and agent about the condition of the house. If you happen to find out, after moving into the new house, that it’s in need of major structural repairs, it can be devastating financially — especially if you are legally bound to the sale and if the payment has been processed.
Getting a second opinion on life insurance coverages is as important as inspecting the house thoroughly before closing the deal. This is because the financial consequences of lack of good coverage can be as bad as ending up with a sub-standard house. Purchasing a life insurance coverage with the same level of forethought that would go into any capital-intensive investment is the hallmark of shrewd investors. Whether it truly makes a difference or not, it’ll help you reconcile with your decisions — which is important for your mental wellbeing.
Second opinions pay long-term dividends
The cost of obtaining a second opinion is a small price to pay when compared to the incremental value of your well-informed investment and the impact that it will have on your future finances. Oftentimes, when you schedule a visit with an advisor to talk about your existing policy, the only cost will be your time. Many advisors offer a no-obligation review of your existing policy and plans, showing you where and how you can maximize the benefits.
In insurance policies, the devil is always in the details. And a tiny, missed detail can snowball into a cost centre under certain circumstances. And in the case of life insurances, the stakes are naturally high, and the non-availability of the policyholder in the event of claims makes it even harder for redressals. So, if you are considering a policy, you have nothing to lose, and everything to gain, by getting a second opinion. Get an opinion on your coverage today to ensure you’ve made the right investment for your family and its financial future.
